Following the recent stock market crash, many prominent artificial intelligence (AI) stocks are now available at reduced prices. Despite ongoing market volatility driven by tariffs and trade disputes, investors have an excellent opportunity to build positions in industry-leading companies.

This article explores five undervalued AI stocks that may be wise purchases this month.

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1. Nvidia

Nvidia (NASDAQ: NVDA) dominates the AI chip market with its cutting-edge graphics processing units (GPUs), which deliver the processing power necessary for handling AI applications. The company has seen remarkable growth, doubling its sales in each of the last two years. Nvidia holds over 80% market share in GPUs, significantly aided by its CUDA software platform, which simplifies programming for developers tackling AI-related tasks.

The expansion of AI infrastructure positions Nvidia favorably to capitalize on future demand. Spending on AI infrastructure is projected to rise, with predictions suggesting that data center capital expenditures will reach $1 trillion by 2028.

The current market downturn has driven Nvidia’s share price down, with a forward price-to-earnings (P/E) ratio of just 21.5 based on analysts’ estimates for this year and a price/earnings-to-growth (PEG) ratio of 0.4, categorizing it as undervalued since stocks with a PEG below 1 are typically seen as bargains.

Image source: Getty Images.

2. Broadcom

While Nvidia excels in standard GPUs, Broadcom (NASDAQ: AVGO) stands out in supporting the development of custom AI chips. Although these custom chips require higher upfront costs and extended design periods, they often outperform standard GPUs and use less power.

Broadcom has begun to secure more AI chip clients, building on its initial relationship with Alphabet. The company estimates that its top three established customers could represent a serviceable market opportunity ranging from $60 billion to $90 billion in its fiscal year 2026, which ends in October 2026. Notably, it has recently welcomed additional clients, including Apple, into its fold. The unique nature of these development programs means they may be less susceptible to tariff-related disruptions.

The company’s stock is currently modestly priced, trading at a forward P/E just above 23. In a strategic move, Broadcom has initiated a $10 billion stock buyback program to leverage its stock’s undervaluation.

3. Amazon

Amazon (NASDAQ: AMZN) is primarily recognized for its e-commerce dominance; however, its most lucrative segment is cloud computing. The firm pioneered the infrastructure-as-a-service model with Amazon Web Services (AWS), which remains the top cloud service provider.

AWS has rapidly expanded, driven by the demand for AI models and applications running on its platform. However, AWS’s growth has faced capacity limitations, prompting Amazon to invest an extraordinary $100 billion in data center capital expenditures this year. In addition, the company developed proprietary AI chips through its Annapurna subsidiary, further enhancing its competitive edge.

Currently trading at a valuation of 27.5 times this year’s earnings estimates, Amazon’s stock is at one of its lowest valuations historically. This presents a favorable opportunity to acquire shares of a leading player in both cloud computing and e-commerce, known for its significant investments to achieve growth.

4. Meta Platforms

Meta Platforms (NASDAQ: META) has integrated AI through its Llama AI model, which has improved user engagement across its social media platforms and enhanced advertisers’ effectiveness. As a result, average advertising prices rose by 14%, with ad impressions increasing by 6% in the previous quarter, matching revenue growth of 21%. The company aims to evolve Llama into a leading AI assistant incorporating multimodal enhancements.

In addition to its AI initiatives, Meta is building a new social media platform called Threads, which has consistently increased its monthly active users, concluding last year with 320 million. In keeping with its typical strategy, Meta plans to monetize Threads in the future, potentially offering a strong growth avenue.

Meta’s stock is currently inexpensive, trading at a forward P/E ratio of 20.5.

5. Salesforce

A well-established player in customer relationship management (CRM) software, Salesforce (NYSE: CRM) aspires to take the lead in agentic AI, which represents the next evolution of AI capable of executing tasks with minimal human oversight.

The software-as-a-service (SaaS) provider has introduced the Agentforce platform that delivers customizable AI agents utilizing no-code and low-code tools integrated into its ecosystem. Additionally, the launch of an AI agent marketplace will further expand its offerings through new templates and capabilities. Agentforce is a consumption-based service, pricing at $2 per interaction, representing a substantial market opportunity for Salesforce moving forward.

With a forward price-to-sales (P/S) ratio of 5.7 and a forward P/E ratio below 22, Salesforce stock is appealing when considering future growth potential.

Should you invest $1,000 in Nvidia right now?

Before investing in Nvidia stock, consider the following:

The Motley Fool Stock Advisor analysts recently identified their top picks for investors, and surprisingly, Nvidia was not included among the ten recommended stocks. The stocks selected are believed to possess substantial potential for growth and may warrant further exploration.